In this daily bar chart of PANW, below, we can see that prices corrected some $80 from September to November. A decline of this size can really hurt a stock and its ability to rebound, but PANW has improved significantly in recent weeks.
PANW is testing/breaking the declining 50-day moving average line. The rising 200-day line is now only $11 above the market.
The daily On-Balance-Volume (OBV) line does show a decline from September to the end of November but it looks less severe than the price decline.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is just below the zero line after a cover shorts buy signal in late November.
In this weekly bar chart of PANW, below, we can see some improvement in the technical studies. Prices are below the 40-week moving average line but the line is just peaking/cresting now.
The weekly OBV line shows a strong uptick and the weekly MACD oscillator has been narrowing towards a potential cover shorts buy signal.
In this Point and Figure chart, below, we just concentrate on price changes and reversals. The chart shows that a trade at $193.55 will be a double top breakout and open the way to a possible rally to $245.43.
Bottom line strategy: Traders could go long PANW at current levels and on strength above $193.55. Risk below $170 and look for gains to the $230-$245 area in the weeks ahead.